News: Article

Rampant Pre-Holiday Optimism At Ad Agencies.

November 19th, 2015 | Read more articles from 2015 or Visit the News Archive
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Originally Appearing at Inside Radio

More than half of the nation’s advertising agencies are seeing increases in client spending over last year’s pre-holiday season boom. Media buying and software firm Strata says that 53% of agencies note an uptick, “offering optimistic signs for the ad economy as the holiday season approaches.”

Overall, its outlook for the end of 2015 looks rosy, with 45% of the surveyed agencies projecting higher growth in the second half of 2015 over the first half.

Strata finds that client budgets this year are expected to increase at 17% of the agencies, while 57% believe budgets will remain flat. Another positive sign—40% of the ad agencies plan on hiring additional staff in the second half of this year, marking the highest percentage recorded in the Strata Survey in five years.

The increasing popularity of programmatic buying was also noted. The survey finds that 40% of agencies are making at least 20% of their buys programmatically, including a range of ad types—mobile (29% of agencies), streaming video (22%) and streaming audio (24%). Strata notes, “The ability to target audiences is the top benefit of programmatic buying for 48% of agencies, followed by improved buying automation/efficiency (43%).” Worries over the quality of inventory remains the prevalent concern with programmatic buying for 60% of agencies, followed by transparency into inventory sources (45%).

The survey found increased confidence in ROI for online video, a channel that many radio stations are pursuing through video pre-roll and mid-roll ads. A higher percentage of agencies feel their video ad buys are more accurately targeted than in the past. “As confidence in online video ROI grows, agency appetite and acceptance of different forms of digital video will only rise,” according to J.D. Miller, director at Strata.


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